The BBA is now integrated into UK Finance. Please go to www.ukfinance.org.uk for new content and updates from UK Finance.
Material published by BBA prior to 1st July 2017 is still available on this website.
From 1 July 2017, the finance and banking industry operating in the UK will be represented by a new trade association, UK Finance. It will represent around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation will take on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.x
US investment banks show support for London
Following the UK’s vote to leave the European Union, five top US investment banks have said they will “keep working to promote London and its position as a leading financial centre,” (Telegraph b1). The banks – which include Goldman Sachs, Morgan Stanley and J.P. Morgan – made the joint statement with Chancellor George Osborne following a meeting on Thursday. Reuters referred to the legacy of London’s established financial sector, but added that banks “made no commitment” about keeping jobs in Britain.
May and Leadsom in final round of leadership race
After the second MPs’ ballot for the Conservative leadership, Home Secretary Theresa May and Energy Minister Andrea Leadsom are the final two candidates in the running (Guardian p1). The vote, which was announced yesterday evening, means the UK will have its first female Prime Minister since Margaret Thatcher. The Telegraph (p1) reported that Leadsom is likely to attract Eurosceptic activists who want a “Brexit Prime Minister,” whilst the Times (p1) reported that May, who was backed by 199 MPs, has support from “left and right, leavers and remainers”.
Italian banks facing turmoil
The New York Times reports that Italian banks are “spreading fear through global financial markets,” as they’re faced with non-performing loan portfolios, estimated to be around €360 billion – the equivalent of a fifth of the country’s GDP. The Wall Street Journal suggests the crisis is due to “clubby” relationships with regulators and politicians who’ve shielded against “takeovers, competition, layoffs or consolidation,” and that attempts to improve this have been “half-hearted.” The FT (online only) suggests the UK’s decision to leave the EU has exacerbated Italy’s problem, having “pushed equity and bond prices even lower.”
Latest from the BBA
Read BBA Chief Executive Anthony Browne’s newsletter on the EU referendum vote, the BBA’s Retail Banking Conference and Andrew Bailey taking the reins at the FCA.
The BBA’s 14th annual Financial Crime and Sanctions Conference will be taking place on the 20th and 21st September. Visit our website to view the conference programme, confirmed speakers and to book your place.
Latest from our sponsor Jaywing
Jaywing’s Data Management Practice Director, Inderjit Mund, blogs about the role of data management when it comes to regulatory compliance.
ONS: UK productivity statistics Q1 2016
ONS: UK trade statistics May 2016
HMRC: Overseas Trade Statistics May 2016
REC/KPMG: jobs report June 2016
NATO: summit begins
Stat of the day
€360 billion – Italian banks’ current non-performing loan portfolios
Chair of the Swiss Bankers’ Association, Patrick Odier, has said Switzerland, London, Hong Kong and Singapore should form an “F4” alliance following the British vote last month to leave the EU, reports the FT (b21).
Chair of the Treasury Select Committee, Andrew Tyrie, has written to 13 retail banks over charges to customers’ personal accounts, particularly in relation to overdrafts (City AM paper only).
The FT (online only) features a report from think-tank, Centre for Cities, which suggests London provides 30 per cent of the UK’s main taxes. It reports taxes fell in other major cities including Birmingham, Glasgow and Leeds.
Following the UK’s vote to leave the EU, the Telegraph (online only) reports that banks, house-builders and insurers now offer the highest potential dividend yields among large UK companies.
A top sovereign debt agency, Fitch, has predicted this year will see more downgrades to government credit ratings than ever before, reports City AM (p5).
Home owners can cash in on record-low interest rates as borrowing costs fall, reports the Times (p8). It says hundreds of thousands of existing borrowers with mortgages linked to base rate will see the cost of their monthly re-payments fall, if the Bank of England decides to cut interest rates in next Thursday’s Monetary Policy Committee meeting.
What the commentators say
Gillian Tett writes in the FT (p13) suggesting the UK is unlikely to be able to rely on overseas trade to overcome the negative economic impacts of the vote leave decision.